business optimization thru information analytics

© 2010 IBM Corporation

Business Optimization Through Information & Analytics

George Mattathil -

5/12/2011


Building a Smarter Planet

The world is changing and becoming more…

The resulting explosion of information

creates a need for a new kind of

intelligence

… to help build a Smarter Planet

Instrumented

Interconnected

Intelligent



Many Organizations are Operating with Blind Spots; Those Applying Information & Analytics are Breaking Away

1 in 3 Business leaders frequently make

decisionsbased on information they

don’t trust, or don’t have

1 in 2 Business leaders say they don’t

have access to the information

they needto do their jobs

Predict and prepare for the future by evaluating trade-offs proactively

15X

Industry Top performers

Industry Under performers

Top Performers

Demonstrate Expertise

Source: IBM: Break Away with Business Analytics and Optimization Study



The Key is Leveraging Information and Analytics Informed, Real-time Decisions at the Point of Impact…

Sense and respond

Instinct and intuition

Automated

Skilled analytics experts

Back office

Predict and act

Real-time, fact-driven

Optimized

Everyone

Point of impact

Breakaway

Approach

Lack of

Insight

Inability

to Predict

Inefficient

Access

Variety

Volume

Velocity



Mobile County Public Schools: Real-

time analytics more effectively measures

student performance and will

immediately identify “at risk” students

Mobile Service Provider: Analysis of

social relationships prevents customer

churn and identify new products

CenterPoint Energy: First-of-a-kind

outage detection and self-healing within

the grid of an intelligent utility network

University of Ontario Institute of

Technology: Early detection of

potentially life-threatening conditions in

premature infants

The Result: Organizations Have the Insight to Act with Confidence.

http://old.ccsb.ca/um/images/UofOntario-in-Oshawa-005.jpg



2X

Client Investment in

Business Analytics & Optimization

Projects is Growing over Twice as

Fast as Business Automation

Automation

Business

Optimization

Information

& Analytics

Transforming Business Through Information and Analytics As Significant as ERP & CRM…

Creating Value

Lowering Costs



Transforming Business Through Information and Analytics

Reduction in storage space

Savings through modernization of core business applications

$60M

Reduction in loan processing cycle time 60%

Improvement in supply chain performance

50%

Reduction in recall probability

Decrease in unplanned outage time

30%

50%

50%



AcceleratingBusiness Optimization…

An Industry Context &

Technology Innovation to

Accelerate the Journey



Information Agenda A proven, industry-specific approach for aligning information with business objectives

Establish end-to-end vision &

business-driven value

Align people, process &

information

Accelerate projects for

short & long-term ROI

Architect an extensible information

infrastructure

Create

Value

Lower

Costs



Guides, Workshops, Accelerators, Roadmaps…

Information Agenda Strategy, Roadmaps, Information Agenda Guides

Information Agenda Guide for Banking & Finance



Smarter Business Outcomes With Information Agenda Strategy, Roadmaps - Information Intensive Projects

Connect the roadmap to a

reference architecture

Raise maturity of information

usage over time

Develop an adoption roadmap

for the organization



Rooms To Go: Increased sales by

helping staff optimize floor planning

based on customer buying habits; save

$120k/yr through self-service reporting.

Portugal Telecom:Streamlined over 150

business processes, savings millions of

Euros in IT cost while improving productivity.

Kaiser Permanente: Developed

enterprise-wide strategy for clinical data

management, consolidating member data

while ensuring control and security.

Irish Life & Permanent: Improved

cross-sales, created new services,

improved customer satisfaction and

reduced costs via MDM initiative.

Businesses Planning Their Information Agenda



Accelerating Business Optimization

Meet new throughput, scalability, reliability and data

protection requirements while controlling costs.

Create a single, trusted view of information across

the organization managed over a strategic period

Optimize processes, manage business performance,

and anticipate opportunities and threats

Analyze and use information at the point of

industry-specific business impact Create

Value

Lower

Costs



Accelerating Business Optimization (continued)

Create a single, trusted view of information across

the organization managed over a strategic period





Value

Lower

Costs








Value

Lower

Costs




Create

Value

Lower

Costs



A Flexible Information Platform

Expanding Technology $11B in Acquisitions Since 2006

Over 10,000 Technical Professionals

Over 15,000 New Clients

Over 2,300 New Partners

Create

Value

Lower

Costs



Bharti Airtel: Transformed infra-

structure, reducing new account time

for by 90% while enabling addition of

2.5-3M new subscribers a month.

JB Hunt: New business process

management system returns $1M

annually through real-time visibility

into business.

Coca-Cola Bottling: Replaced

Oracle with IBM DB2, lowering costs

and storage by 40% and

manufacturing run duration by 65%.

Building a Flexible Information Platform

Geisinger Health System: Integrating

real-time clinical data with medical

history to create a massive storehouse

of intelligence.



Workload Optimized Systems and Services Designed, integrated systems provide a foundation

Power7 Accelerators

IBM Smart Analytics Optimizer for DB2 for z/OS

CloudBurst Smart Analytics

Systems Scale

OutNAS

System technology enhancements that hone capabilities for specific workloads

Integrated hardware and software solutions, optimized for specific workloads

System

Optimizers

Smart Business

Systems

Power7 System x

A choice of architectures – servers and storage – each fit for purpose

DS8000 XIV System z

General Purpose

Platforms

Information Archive

Storage Virtualization



Taking it to the Next Level with Business Analytics

Create

Value

Lower

Costs



US Lumber: 3,623% ROI through

improved productivity, reduced

inventory, accelerated accounts

receivable turnover.

Martin’s Point Health Care: 1,185%

ROI through BI competency center

that reduced reporting demands and

improved user productivity.

Blue Mountain: 1,822% ROI by

eliminating excess inventory,

improved reporting, more strategic

pricing decisions.

Delivering Insight and ROI Through Business Analytics

Swedbank: Reduced loan processing

time from 6 days to 20 minutes by

automating decisions using predictive

analytics.



Taking it to the Next Level: Predictive Analytics

Center for Disease Control Characterizes disease

& quickly assess medical needs in real-time

Cablecom GmbH Doubled ability to predict

churn & reduced actual churn 10 fold

Infinity Property & Casualty Corporation

Real-time claims scoring starts fraud

investigations within 24hrs. vs. 2 weeks

Richmond County Police pinpoints hotspots &

leads to 20-30% decease in violent crimes



Taking it to the Next Level: Content Analytics

NTT DoCoMo Content Analytics over

“Voice of Customer” data creates insight

driving customer-oriented decisions

Kraft Content Analytics over online

customer postings helps target & deliver

new campaigns, increasing sales & loyalty

University of Ontario Institute of

Technology detects life-threatening

conditions in infants up to 24 hrs earlier

Large Claims 3rd Party Administrator

Content Analytics over claims detects fraud

faster, reducing costs by millions



Taking it to the Next Level – Packaged Analytics

Packaged Business Intelligence for Line of Business …

Ready-made reporting and analysis that

consistently measure performance

departmentally and across the enterprise

Create

Value

Lower

Costs



Information Governance Optimizing the Information Supply Chain

Information Quality

InfoSphere QualityStage

InfoSphere Information Analyzer

InfoSphere Business Glossary

Single View

InfoSphere MDM Server

InfoSphere Warehouse

Information Protection

Guardium

Optim Data Privacy

Optim Data Redaction

IMS & System z Tools

Information Lifecycle Mgmt

Optim Data Growth

InfoSphere Enterprise Records

InfoSphere Discovery

FileNet

BICC

Cognos 8 BI

Cognos TM1

SPSS

Compliance

InfoSphere eDiscovery

FileNet Advanced Case Mgmt

Optim Data Growth

Guardium



Taking it to the Next Level: Industry by Industry



Taking it to the Next Level: With Experts from IBM…

BI &

Performance

Management

Advanced

Analytics &

Optimization

Enterprise

Content

Management

Enterprise

Information

Management

BAO

Strategy

Business Know-How Strategy & Change,

5,000 Dedicated Consultants



Pre-optimized

Business Intelligence Software

triples out of the box performance*

* Based on IBM Laboratory Tests. Actual results may vary depending on specific environment and configuration.

Powerful Data Warehouse

Warehousing Platform

Advanced Workload Management

System Automation

Analytics Software Options

Business Intelligence Capabilities

Cubing Services

Text and Data Analytics

Hardware & Services

Server Platform

Storage Capacity

Build, Deploy, Health Check &

Premium Support Services

Putting it All Together… IBM Smart Analytics System



We’ve Only Just Begun to Uncover What is Possible on a Smarter Planet.

With the information organizations already have and new

analytical tools, there are no limits to what is possible

Real-time Trading Positions

Real-time Risk Analysis

M&A Agility…

Withholding Tax Optimization

How can you use information and analytics to transform your organization?



Over $11B in

acquisitions since 2006

Over 10,000 technical

professionals

Over 5,000

Dedicated Consultants

Largest Math Department

in Private Industry

Over 2,300 new Business

Partners since 2006

IBM is Investing to Accelerate Business Optimization

“Since 2006, IBM has deliberately & doggedly constructed an

unparalleled portfolio… it's difficult to see how any

competitors will be able to compete anytime soon…”



Product and Service

Innovation

Information &

Analytics

Next-generation

Datacenter

Smarter planet: Thinking and acting in new ways to make our systems more efficient, productive and responsive.

People and Process

Transformation

Smart Industries & Cities

Sustainability Security and

Resiliency



Innovation That Matters $11B USD in Acquisitions Over 10,000 Technical Professionals

Autonomic Operations

Developer Productivity

Deep Compression

pureXML

pureScale

Pervasive Content

Stream Computing

Content Analytics

Advanced Case Management

Smart Analytics Systems

Social Analytics/Consumer Insight

2010

2006



Large agri-business

companyconsolidated transactional financial

data into standard, reliable management

reporting

Faster Insight: Smarter Decisions with Packaged Analytics

Oil & Gas international company

projected $2-$5M in savings with

consolidated analysis of spend

Manufacturerpinpointed sales territory that

was discounting too heavily and impacting

revenue

Chicago-based insurance firm provided

managers with consistent reporting and

analysis to assess employees’ performance



Volume 988 exabytes: The

amount of digital information

that will exist in 2010, equal to

a stack of books from the sun

to Pluto and back…

Variety 80% of new data growth

is generated largely by

email, with increasing

contribution by documents,

images, and video and

audio.

Velocity 77% of executives say

they do not have real-time

information to make key

business decisions.

We are Producing an Explosion of Information…

Source: Various IBM and Public Studies



…While Forward-Thinking Organizations Distance Themselves From Their Competitors

Challenging

Disrupt the status quo to

improve the business and

create new opportunities

Empowered

Enable and empower

employees to analyze,

decide and act

Anticipating

Predict and prepare

for the future by

evaluating trade-offs

proactively

21.9X 5.6X

15X

Chart shows differences at the highest achievement levels

Key: Top performers (i.e., 1st quintile relative to industry peers)

Lower performers (i.e., 4th and 5th quintile relative to industry peers)

Relative difference of top performers to lower performers

32.5%

1.5%

22.7%

1.5% 4.4%

25%

Source: Breaking Away with Business Analytics and Optimization: New intelligence meets enterprise operations at www.ibm.com/gbs/intelligent-enterprise.

Key Advantages

Winning Characteristics

High quality

information

Strong decision

support

Keen focus on

driving business

change

http://www.ibm.com/gbs/intelligent-enterprise





Physician Telco Call Center Rep

Loan Officer Retail Sales Associate

…predict infection in premature

newborns 24 hours earlier?

…apply social relationships of

customers to prevent churn?

…adjust credit lines as

transactions are occurring to

account for risk fluctuations?

…determine who to offer discounts

at time of sale instead of

offering to all?

Imagine if you could…



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business optimization thru information analytics

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